Kioxia Declares NAND 'Super-Cycle' as 2027 Capacity Sells Out, Net Profit Jumps 37-Fold
Kioxia reports record earnings driven by AI demand, with executives confirming a NAND super-cycle and full allocation of 2027 production capacity.
Japanese semiconductor manufacturer Kioxia Holdings reported record financial results for the first half of fiscal year 2027 (April–September 2026) on October 30, 2026. The company announced that cumulative sales reached ¥4.2471 trillion, approximately 5.4 times higher than the previous year, while Non-GAAP net profit surged to ¥2.2356 trillion, marking a roughly 37-fold increase. This dramatic growth was primarily driven by rising prices and increased shipment volumes of NAND flash memory chips.
During the earnings briefing, Executive Vice President Yoshiko Kawamura explicitly stated that the NAND market has entered a period of accelerated growth fueled by artificial intelligence. "We are clearly in a super-cycle," Kawamura said, noting that robust demand from data centers and enterprise storage is offsetting softness in the smartphone and PC markets. He projected that this strong demand would persist through 2028.
The tightness in supply and demand is evidenced by the company's capacity allocation status. According to Kioxia, nearly all production capacity for 2027 has already been assigned to customers. For 2028, more than 50% of the storage capacity shipments have been secured through Long-Term Agreements (LTAs). This high level of order visibility provides significant reassurance regarding the durability of AI-driven storage demand.
Structurally, SSD and storage applications accounted for 65% of total revenue, with data center and enterprise segments comprising about 60% of that share. While smart device revenue also hit a record high, its growth was largely price-driven rather than volume-driven. This shift underscores the role of AI servers as the primary pillar supporting profitability in the NAND industry.